IEX » Topics » Revenue recognition

These excerpts taken from the IEX 10-K filed Mar 2, 2009.
Revenue Recognition
 
The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectibility of the sales price is reasonably assured. For product sales, delivery does not occur until the products have been shipped and risk of loss has been transferred to the customer. Revenue from services is recognized when the services are provided or ratably over the contract term. Some arrangements with customers may include multiple deliverables, including the combination of products and services. In such cases the Company has identified these as separate elements in accordance with EITF No. 00-21, “Revenue Arrangements with Multiple Deliverables” and recognizes revenue consistent with the policy for each separate element based on the fair value of each accounting unit. Revenues from certain long-term contracts are recognized on the percentage-of-completion method. Percentage-of-completion is measured principally by the percentage of costs incurred to date for each contract to the estimated total costs for such contract at completion. Provisions for estimated losses on uncompleted long-term contracts are made in the period in which such losses are determined. Due to uncertainties inherent in the estimation process, it is reasonably possible that completion costs, including those arising from contract penalty provisions and final contract settlements, will be revised in the near-term. Such revisions to costs and income are recognized in the period in which the revisions are determined.
 
The Company records allowances for discounts, product returns and customer incentives at the time of sale as a reduction of revenue as such allowances can be reliably estimated based on historical experience and known trends. The Company also offers product warranties and accrues its estimated exposure for warranty claims at the time of


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Table of Contents

 
IDEX CORPORATION AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
 
sale based upon the length of the warranty period, warranty costs incurred and any other related information known to the Company.
 
Revenue Recognition
 
The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectibility of the sales price is reasonably assured. For product sales, delivery does not occur until the products have been shipped and risk of loss has been transferred to the customer. Revenue from services is recognized when the services are provided or ratably over the contract term. Some arrangements with customers may include multiple deliverables, including the combination of products and services. In such cases the Company has identified these as separate elements in accordance with EITF No. 00-21, “Revenue Arrangements with Multiple Deliverables” and recognizes revenue consistent with the policy for each separate element based on the fair value of each accounting unit. Revenues from certain long-term contracts are recognized on the percentage-of-completion method. Percentage-of-completion is measured principally by the percentage of costs incurred to date for each contract to the estimated total costs for such contract at completion. Provisions for estimated losses on uncompleted long-term contracts are made in the period in which such losses are determined. Due to uncertainties inherent in the estimation process, it is reasonably possible that completion costs, including those arising from contract penalty provisions and final contract settlements, will be revised in the near-term. Such revisions to costs and income are recognized in the period in which the revisions are determined.
 
The Company records allowances for discounts, product returns and customer incentives at the time of sale as a reduction of revenue as such allowances can be reliably estimated based on historical experience and known trends. The Company also offers product warranties and accrues its estimated exposure for warranty claims at the time of


30


Table of Contents

 
IDEX CORPORATION AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
 
sale based upon the length of the warranty period, warranty costs incurred and any other related information known to the Company.
 
Revenue
Recognition



 



The Company recognizes revenue when persuasive evidence of an
arrangement exists, delivery has occurred, the sales price is
fixed or determinable, and collectibility of the sales price is
reasonably assured. For product sales, delivery does not occur
until the products have been shipped and risk of loss has been
transferred to the customer. Revenue from services is recognized
when the services are provided or ratably over the contract
term. Some arrangements with customers may include multiple
deliverables, including the combination of products and
services. In such cases the Company has identified these as
separate elements in accordance with EITF
No. 00-21,
“Revenue Arrangements with Multiple Deliverables” and
recognizes revenue consistent with the policy for each separate
element based on the fair value of each accounting unit.
Revenues from certain long-term contracts are recognized on the
percentage-of-completion method. Percentage-of-completion is
measured principally by the percentage of costs incurred to date
for each contract to the estimated total costs for such contract
at completion. Provisions for estimated losses on uncompleted
long-term contracts are made in the period in which such losses
are determined. Due to uncertainties inherent in the estimation
process, it is reasonably possible that completion costs,
including those arising from contract penalty provisions and
final contract settlements, will be revised in the near-term.
Such revisions to costs and income are recognized in the period
in which the revisions are determined.


 



The Company records allowances for discounts, product returns
and customer incentives at the time of sale as a reduction of
revenue as such allowances can be reliably estimated based on
historical experience and known trends. The Company also offers
product warranties and accrues its estimated exposure for
warranty claims at the time of





30





Table of Contents





 




IDEX
CORPORATION AND SUBSIDIARIES




 




NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)


 



sale based upon the length of the warranty period, warranty
costs incurred and any other related information known to the
Company.


 




Revenue
Recognition



 



The Company recognizes revenue when persuasive evidence of an
arrangement exists, delivery has occurred, the sales price is
fixed or determinable, and collectibility of the sales price is
reasonably assured. For product sales, delivery does not occur
until the products have been shipped and risk of loss has been
transferred to the customer. Revenue from services is recognized
when the services are provided or ratably over the contract
term. Some arrangements with customers may include multiple
deliverables, including the combination of products and
services. In such cases the Company has identified these as
separate elements in accordance with EITF
No. 00-21,
“Revenue Arrangements with Multiple Deliverables” and
recognizes revenue consistent with the policy for each separate
element based on the fair value of each accounting unit.
Revenues from certain long-term contracts are recognized on the
percentage-of-completion method. Percentage-of-completion is
measured principally by the percentage of costs incurred to date
for each contract to the estimated total costs for such contract
at completion. Provisions for estimated losses on uncompleted
long-term contracts are made in the period in which such losses
are determined. Due to uncertainties inherent in the estimation
process, it is reasonably possible that completion costs,
including those arising from contract penalty provisions and
final contract settlements, will be revised in the near-term.
Such revisions to costs and income are recognized in the period
in which the revisions are determined.


 



The Company records allowances for discounts, product returns
and customer incentives at the time of sale as a reduction of
revenue as such allowances can be reliably estimated based on
historical experience and known trends. The Company also offers
product warranties and accrues its estimated exposure for
warranty claims at the time of





30





Table of Contents





 




IDEX
CORPORATION AND SUBSIDIARIES




 




NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)


 



sale based upon the length of the warranty period, warranty
costs incurred and any other related information known to the
Company.


 




Revenue
Recognition



 



The Company recognizes revenue when persuasive evidence of an
arrangement exists, delivery has occurred, the sales price is
fixed or determinable, and collectibility of the sales price is
reasonably assured. For product sales, delivery does not occur
until the products have been shipped and risk of loss has been
transferred to the customer. Revenue from services is recognized
when the services are provided or ratably over the contract
term. Some arrangements with customers may include multiple
deliverables, including the combination of products and
services. In such cases the Company has identified these as
separate elements in accordance with EITF
No. 00-21,
“Revenue Arrangements with Multiple Deliverables” and
recognizes revenue consistent with the policy for each separate
element based on the fair value of each accounting unit.
Revenues from certain long-term contracts are recognized on the
percentage-of-completion method. Percentage-of-completion is
measured principally by the percentage of costs incurred to date
for each contract to the estimated total costs for such contract
at completion. Provisions for estimated losses on uncompleted
long-term contracts are made in the period in which such losses
are determined. Due to uncertainties inherent in the estimation
process, it is reasonably possible that completion costs,
including those arising from contract penalty provisions and
final contract settlements, will be revised in the near-term.
Such revisions to costs and income are recognized in the period
in which the revisions are determined.


 



The Company records allowances for discounts, product returns
and customer incentives at the time of sale as a reduction of
revenue as such allowances can be reliably estimated based on
historical experience and known trends. The Company also offers
product warranties and accrues its estimated exposure for
warranty claims at the time of





30





Table of Contents





 




IDEX
CORPORATION AND SUBSIDIARIES




 




NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)


 



sale based upon the length of the warranty period, warranty
costs incurred and any other related information known to the
Company.


 




This excerpt taken from the IEX 10-Q filed May 8, 2008.
Revenue recognition
 
The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectibility of the sales price is reasonably assured. For product sales, delivery does not occur until the products have been shipped and risk of loss has been transferred to the customer. Revenue from services is recognized when the services are provided or ratably over the contract term. Some arrangements with customers may include multiple deliverables, including the combination of products and services. In such cases the Company has identified these as separate elements in accordance with Emerging Issues Task Force Issue No. 00-21, “Revenue Arrangements with Multiple Deliverables” and recognizes revenue consistent with the policy for each separate element based on the fair value of each accounting unit. Revenues from certain long-term contracts are recognized on the percentage-of-completion method. Percentage-of-completion is measured principally by the percentage of costs incurred to date for each contract to the estimated total costs for such contract at completion. Provisions for estimated losses on uncompleted long-term contracts are made in the period in which such losses are determined. Due to uncertainties inherent in the estimation process, it is reasonably possible that completion costs, including those arising from contract penalty provisions and final contract settlements, will be revised in the near-term. Such revisions to costs and income are recognized in the period in which the revisions are determined.
 
The Company records allowances for discounts, product returns and customer incentives at the time of sale as a reduction of revenue as such allowances can be reliably estimated based on historical experience and known trends. The Company also offers product warranties and accrues its estimated exposure for warranty claims at the time of sale based upon the length of the warranty period, warranty costs incurred and any other related information known to the Company.
 
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